FINRA Reportedly Suspends Trevor Rahn After Allegations of Unauthorized Trades, Unsuitable Trading Strategy

According to the Financial Industry Regulatory Authority (FINRA) on March 19, the regulator has reportedly suspended former JP Morgan advisor Trevor Rahn for 18 months after allegations that he implemented an unauthorized and unsuitable trading strategy for customer orders. He was also fined $10,000.

While reportedly employed by JP Morgan Securities, Rahn purportedly engaged in a pattern of breaking customer orders for execution from January 2014 to September 2018, according to a Letter of Acceptance Waiver and Consent.

Rahn allegedly recommended an average pricing investment strategy to his customers in which he executed orders by breaking them into multiple small trades, each generating a separate commission, yet had no reasonable basis to believe this strategy was suitable for his customers. He also purportedly exercised time and price discretion on over 7,500 trades without the required authorization, according to the letter of consent.

Between June 2016 and September 2017, Rahn purportedly executed 577 unauthorized trades in a customer’s account and mismarked 4,714 solicited trades in three customer accounts as “unsolicited,” according to FINRA’s findings.

According to his FINRA broker profile, Rahn was reportedly registered with JP Morgan Securities in Los Angeles, CA from 2010 until he was dismissed in September 2018.  Rahn’s broker profile indicates he was allegedly discharged for “unacceptable practices {by the representative} relating to the timing and size of orders entered and resulting transaction charges in a client account and relating to the  marking of certain orders for the account as unsolicited.”

Rahn reportedly has 6 customer complaints filed against him since 2016. Allegations include selling a private placement investment away from his member firm,  and “unauthorized trading and margin use in customer’s account in order to generate commissions,“ among others.

Filing a Complaint against your Brokerage Firm

The White Law Group is investigating potential securities fraud claims involving Trevor Rahn and the liability his former employers may have for failure to properly supervise him.

If a registered broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.

When brokers abuse client accounts and conduct transactions that violate securities laws, such as selling unapproved securities or making unauthorized trades, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

If you are concerned about investments with Trevor Rahn and JP Morgan Securities, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation, or visit us on the web at www.whitesecuritieslaw.com.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois.